Category Archives: Hong Kong company

Birth of Company – Company Incorporation

Company Formation:

Company incorporation is the term which defines formation or creation of a new company which also means the registration process of the company. According to Marshall, Chief Justice of USA,” A person, invisible, artificial intangible and existing in the contemplation of law is termed as a company”. The formation of legal registered association can be defined as company incorporation.

Classification of Company:

Company can be of different types. Companies are mainly classified as  the following:

  •  Companies classified based on the mode of incorporation – This can be further classified as:
    • Chartered companies.
    • Statutory companies.
    • Registered or incorporated companies.


  • Companies on the basis of Number of members – This includes:
    • Private company and
    • Public company.


  • Companies on the basis of the control:
    • Holding company
    • Subsidiary company


  • Companies on the ownership of companies:
    • Government companies
    • Non-government companies


  • Companies on the basis of Domicile
    • Local companies.
    • Foreign companies.
    • Multinational Companies.

Company incorporation:

Company incorporation involves various stages commencing from the initial stage of discovering the idea for the business to the starting of business (final stage). The steps include:

  • Promotion - This is the initial stage of company incorporation. This stage includes the business idea and its detailed investigation with the availability of resources and the purpose.

Promotion of a company can be done either through the conversion of existing firm or by starting a new firm. Promotion involves stages that includes discovery of Idea, Preliminary Investigation, Detailed investigation, Assembling ,Financing, Promoters, Duties and liabilities of Promoters.

  • Registration – The process of subscription of memorandum of the company is known as the registration. For the purpose of registration a company requires:
    • The memorandum of the company.
    • The articles and
    • The Agreement.
    • Capital subscription- Depending upon the issuance of prospectus the procedure for certificate varies.
    • Commencement of business- The time when a company begins it business.

Incorporation’s advantage for owner and business:

  • Saves owner’s assets from companies liability.
  • Easy transfer of ownership.
  • Lower tax rate when compared to the personal income.
  • Capital raise through sale of stock.

incorporation provides a healthy feel to the shareholders, directors, owners. risks can be taken expecting the maximum return when the company is incorporated. an incorporated company or a business feels financially secured.

The various kinds of services that one can expect from a corporate secretary

A corporate secretarial service provider has a vast pool of services to choose from. An organization which is fairly self-reliant may not need all and hence have the option of picking and choosing what they need. Below are the broadly classified services that can be availed:

  • Assistance and advice

This is amongst the foremost services where a corporate secretary would help with various types of administrative changes that the company may be willing to make. It makes sense to hire the services of a professional here since some of these services are one time only and hence not practical for a company to hire a resource for the same. The formation of the company, its dissolution, re-registration, strike offs, name change, restructuring, floatation of shares are some of the events in which a corporate secretarial service is of assistance.

  • Compliance

Corporate secretarial services are of utmost help when filing statutory returns, annual registers and filling for any changes in the administration of the company.

  • Outsourcing of all services

The management of the company’s annual general meetings, maintaining and regularly updating the minutes of the board meetings and making announcements of the issues of IPO or any other matter on the stock exchange are all a part of services that a company secretary would provide if all of its administrative operations are outsourced.

  • Maintenance of global companies

The management of global and multinational companies is considered much more challenging than regular companies working out of one geographic location only. The help of corporate secretarial services is considered very useful in the following cases:

  • Formation of foreign branches
  • Administration of foreign branches
  • Registering the agents and office names in accordance with the regional laws
  • Documentation relating to the foreign branch
  • Services relating to annual compliance
  • Documentation which is related to any restructuring decision of the company


  • Other services

Corporate secretarial services can be used when an organization has to name a company secretary in their official fillings or maintaining and updating documentation relating to company’s statutory requirements. Other kinds of services including filling up of any interim vacancies in a company and ensuring that work continues smoothly or managing the in-house legal and compliance department of the organization. The work of a corporate secretary in an organization is to manage an update all documentation requirements and to ensure that the various departments have their compliance documents updated at all times too.

The advantages of Singapore and Hk Business Incorporation

The globally recession has developed financial marketplace turmoil which has brought to significantly depreciated house and monetary assets, along with huge beliefs being very easily wiped off inventory marketplaces frequently because 2008. Using the Asian Advancement Bank, typically the economic crisis very easily wiped $50 trillion from the need for monetary assets all through 2008. Approximately 20% of person â loss were within building Asia, that is similar to a single year’s GDP.
Often the achievement and quick growth of Asian countries over the past several years has meant Asian building monetary systems has been influenced greater than other locations through the third world with the global personality from the downturn. However, the potency of several Asian monetary techniques plus the training learned in the 1997 financial crisis place Asia just like a region that could leave the existing recession prior to western countries. Rising areas
Some of the greatest financial growth prices lie within Asia. China, which has lately turn out to be the cell phone industry’s 3rd greatest economy, has received annual financial growth determining 9% for many years. Through the G-20 nations, Indian provides the second best GDP price of development (following China).
“The business cultures and lawful frameworks usually are greatly various in growing areas. Sometimes company increase remains a troublesome process which needs specialist knowing.
These types of factors obviously try to the advantage typically the Singapore increase and include Hong Kong Business. Hong Kong is generally a natural gateway directly into China, when Singapore is actually busy advertising itself as the regional centre of choice.
Both monetary systems regularly rank as the tour’s freest. Within the 2009 Index of financial Freedom, US-based Typically the Heritage Foundation locations Hong Kong along with Singapore because third and 4th with regards to economic independence. Hong Kong has a eye upon openness to worldwide trade and investment decision. When Singapore has a relatively little economy, its visibility to globally business along with investment indicates starting Singapore incorporation provides usage of one of the mobile phone industry’s greatest financial techniques.
Depending on Singapore’s Economic Development Panel, the government agency allocated with developing overseas businesses concerning Singapore, the continent ranks extremely in varied global online surveys.
Showing the benefits of Hong Kong business incorporation, the Heritage statement states, This small island is probably the world’s top financial centres, and controlling banking along with financial solutions is clear and effective.”


Hong Kong business is meals for offshore business?

2008070719485217777Hong Kong is definitely an global city. It gives some features with additional leading worldwide city such as New York which will make Hong Kong the well known international area and thus many business traders prefer selecting Hong Kong being an offshore business for their worldwide business along with procedures.

1. The economy method is market focused, with a small involvement of authorities intervention. Numerous investors can select what businesses these people perform, the us government will be more encourage them to commit.
2. The capital moves of cash between nations are for free and devoid of control and limitations. Almost all currencies for example US$, etc… may be used inside Hong Kong, along with totally free of cash wire within and wire out among Hong Kong along with other nations, only exclusion that no cash laundering is included nor criminal actions.

3. Offshore routines usually are 100% tax totally free. Your Hong Kong taxes law provides ruled out which only nearby business is susceptible to profits taxes, overseas business authorized within Hong Kong is actually just offshore business and thus isn’t subject to earnings taxes.
4. Low taxes rate. Actually the business is completed inside Hong Kong, your tax price is merely 17. 5% regarding net earnings. The taxes rate is completely reduced, without this kind of VAT, business taxes, nor funds gains taxes, etc.
5. Formation necessity really is easy. As an global city, an individual, overseas individual or nearby person, can be hired because the shareholder along with director of the Hong Kong business, using the requirement which there should have an appointed nearby secretary and authorized office tackle with regard to corresponding.
6. Absolutely no capital expense is needed. The shareholder is merely needed to sign up your agreement in order to announce that he will certainly lead capital for the business, with out actual funds investment is needed.

7. Unhindered use of business name. Far away, a few names aren’t free to make use of such as having, team,…., etc. Even so, within Hong Kong, the title is readily employed, supplied that they’re not listed within Hong Kong, susceptible to other limited rules for example defective words aren’t permitted to use.
8. You can easily open an just offshore bank account along with making use of Hong Kong business. Hong Kong as a possible worldwide city, ocean going bank account is quite easy to open up with making use of Hong Kong business, the buyer is needed to province his deal with proof paperwork, along with passport duplicate, Hong Kong business formation paperwork and a common explanation of his company.

Setting up an electronics company in Hong Kong

Electronic companies which seek to expand will find Hong Kong the best place to be in. there are all the requirements that business will require so that it increases the rate of production. This is something which most people have realised and are now setting up companies in the city so that they get the returns in investment. What you should know is that for you to expand the business there are some factors which you should consider. These include:-

  1. 1.       Research base

In Hong Kong you will find all that you need so that you find all the required details. With the education facilities in the city and people who are experts in the electronic field. The good thing is that the population if huge and most people are knowledgeable on field therefore you will be in a position to find people offering quality services at very affordable prices.

  1. 2.       Intellectual property protection

In Hong Kong you will enjoy the benefits of a rigorous intellectual property hence making it possible to offer the best services. You can therefore rest assured that whatever you produce you will have the ownership.

  1. 3.       Excellent communication and transport network

You will enjoy faster communications since the city has excellent facilities. This is usually very important since you will have to involve quite a lot of people hence the need to meet from time to time. The city has several airlines that will give you access to the other cities in china. On the other hand, you will also be able to move to other countries within the continent. This will save on the time taken to consult with the required people. The city also has a railway line that passes through which can be of services whenever you require raw materials. With expansion, you will require an additional volume of raw materials. The trains will be the best option for you to use while transporting the raw materials to the site of production especially when they are bulky.

  1. 4.       Market

You will also enjoy from readily available market both locally and internationally. The good thing with this choice of location is that it is well known to be a provider of electronics therefore it can guarantee people that whatever you are producing is genuine. The huge population of the locals alone can be enough to give the business huge returns but there is no harm in exploiting the markets overseas as well.

How People Live Their Lives in Hong Kong?

Hong Kong is a very colorful and a worldly-wise city that warmly welcome emigrants. Outstanding schools, healthcare and its culture make it a great place to work and live.

For 150 previous years, Hong Kong has been centre of attention of people all over the world to explore opportunities and set up their businesses. Today, the city is a home to a vibrant and diverse business community.

Hong Kong is Asia’s most cosmopolitan city; it boasts support and services structures it takes to provide a very homely feeling for international residents, while still having its own unique identity and culture. That is the reason why it’s called Asia’s world city. It’s beautiful scenery, compact size, friendly international community and buzzing nightlife all contribute to offer the most amazing expat living in Asia. It is also known to be one of world’s large and safest cities.

Hong Kong is a city which has 2 official languages, Chinese and English. Although, 97% of the population uses Cantonese, business is usually discussed in English. Almost all information, including government, signs, business websites and announcements is provided in Chinese as well as in English.

Hong Kong offers a large range of locations and homes, including apartments in high rise developments located in the city to the traditional houses in country areas. Expatriates can go for any location that seems best to them, from the beachfront apartments, to the buzz of Hong Kong Island. Serviced apartments are also available for short term stays. You can get the best, suitable accommodation, exactly as you want it to be.

Schooling in Hong Kong provides a very good quality education. Numerous international schools are located here. Students come from overseas to study in the universities present in Hong Kong. Children who study and live in Hong Kong grow up with friends from all over the worlds. These children also get exposed to other languages.  Mandarin is often taught in international schools as the second language.

Hong Kong has high quality private and public healthcare systems. Many government hospitals and clinics, offer less expensive healthcare to the public. Private healthcare is also outstanding and provides holistic, western and traditional Chinese medicine as well. English-speaking specialist is straightforward.

Building business and social networks, and meeting new people in Hong Kong is very easy. There are many chambers of business, commerce and other associations, private clubs, consulates, networking clubs and special interest groups where you can meet many other expatriates.

Integration of Company in Hong Kong

Formerly you have determined to integrate a limited company and selected a corporation name; you can pertain for integration with the Hong Kong Companies Registry (“CR”). To make straightforward the procedure of conception a limited company, any submission for corporation integration comprises a concurrent submission for commerce record. You may merely present the following credentials online at the CR’s e-Registry with the accurate charges:
• Integration appearance NC1
• A duplicate copy of each of the company’s memo of organization and a piece of writing of the organization
• A perceive to the Business Registration Office (IRBR1)
The charges for integration of a corporation limited by shares are:
• Corporation record fee – HK$1, 720 (If unproductive, a submission for a recompense of HK$1, 425 may be made)
• Industry record fee – complimentary for a one-year credential; HK$3, 200 for a three-year certificate
• Levy to the fortification of earnings in bankruptcy finance – HK$250 for a one-year credential; HK$750 for a three-year credential
Submissions for corporation integration and commerce record can usually be practiced within one hour. If you present your request in documentary form, the credential of integration and the commerce record credential will be concerned within four operational days. Thus, people should register their business in the market because this procedure is essential to make commerce profitable in the social order. With this registration, business owners can promote their business easily and they can also gain product orders without any complexity and difficulty in the social order. Business owners can make their business successful by hiring appropriate workers that can be hired from the Hong Kong and foreign countries.
This is possible with the completion of the registration procedure with success and this is potential for all business by the provision of the necessary documents that are helpful to run a business successfully. Accordingly, the business account opening is also essential for promotion of the business but this procedure is possible with the completion of the business registration process that is an easy program for all kinds of business in the marketplace. Accordingly, people can make business accomplishment certain for all people but this is possible with the provision of business certificates that are mentioned as company name, quantity of staff, appointment of a secretary and an executive with consideration of the features and specification of commerce. This is an easy matter but businessmen should gain the support of professional in this procedure to complete it with success.